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this is night by business report with tyler mathisen and susie gharib brought to you in part by. >>, up to the minute stock market news and in depth analysis. our quant rating service provides objective independent ratings daily on over 4300 stocks. learn more at the jobs jolt, good news for main street, is good news on wall street. stocks jump on a strong employment report, putting the ball scarily in the fed's hands. >> making the comeback, what small lenders are doing to grab new mortgage business becoming big winners as they thrive. and market monitor, our guest tonight tells investors to go global for the best returns next year. all that and more tonight on nig"nightly business report" fo friday, december 6th.
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good evening everyone. it looks like good news for the economy is finally good news for wall street. stocks rose sharply because of a super strong jobs report. american businesses added 2,300 jobs in november, much more than expected, and the nation's unemployment rate fell to 7% even, that's a five-year low. the rally was broad base with all ten sectors of the s&p 500 index on the plus side. today's gains come after five straight losing sessions on fears that a stronger economy would be the cat list for the federal reserve to cut back on the stimulus plan. now it looks like investors and traders believe a growing economy is good news. so here is a look at today's closing numbers. the dow shot up almost 200 points back above the 16,000 level. the nasdaq jumped about 30 and s&p rose 20 points returning to the 1800 mark again. so where are all those jobs, and what do the gains mean for the economy?
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hampton pearson takes a look. >> just in time for the holidays, tanger outlets opened this 100 million dollar complex with 80 high-end retailers outside washington d.c. in light of today's surprisingly strong jobs report, opening a new outlet mall doesn't look like such a big business risk after all. >> one thing we're proud of is the employment record from a project that in the hay day was putting in 3,000 workers, construction workers every day on the project. so 6,000 full and part time job and tanger now almost 7,000 full and part time jobs. >> reporter: the outlet mall opening two weeks ago created a thousand jobs. dahsa lee, a store manager at the harley davidson store. >> it was amazing for my manager vanessa to call me and tell i got hired in an area like this, national harbor.
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it was great and i was happy to get the job. >> reporter: nationwide the retail sector added 23,000 jobs. part of the across the board employment spike that brought the rate to 7%. reports today show consumers are starting to spend again, and consumer confidence about job prospects and income has taken its biggest jump in five months heading into the holiday season. so good news about the main street economy is also good news on wall street. with some analysts reading today's rally to the march gets giving the fed's permission to taper but they don't expect ben bernanke and company to be in a rush. >> i think the fed will take one more a month of data to have three months of descent data to start indicating they will clearly taper. >> reporter: the fed's tapering hand could be strengthened if congress comes up with a budget deal, lifting another cloud over the economy.
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what happens when congress returns next week could be crucial. for "nightly business report", i'm hampton pearson in washington. david kelly says the fed is one step closer to deciding to taper. he's chief global strategist at jp morgan funds. hi, david, how close is close besides the jobs report that hampton was just reporting on, the strong gdp number and the strong auto sales, strong home sales, good news on manufacturing, cyber monday. how do you think the fed looks at all this data and could they taper this month? >> yeah, i think they could. i would call it a 50/50 shot if they taper. logically they absolutely should. if the fed is going to be consistent. you go to last june when ben bernanke talked about ending qe, he said they would start later this year and end when the unemployment rate hit 7%. we're at 7% already, and if you go down the list of things the federal reserve has been worried
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about, including unemployment being too high and problems with the federal government and housing, it calms the fears. the federal reserve ought to begin to reduce bond purchases next week. the only question is we thought that in september and they were too nervous to do it then, they would still be too nervous to do it in december. >> what do you think is holding them back, david? >> i think they are at the personnel and federal reserve right now is about as devilish we've seen. i'm not sure what should hold them back further. i've called them wrong in the past, so i don't want to say it's a sure thing. logically, they absolutely should begin. this is the most extreme monetary policy we've had in 100 years of federal reserve. it doesn't make sense with the unemployment rate coming down. the economy is too strong for the federal reserve to keep emergency measures in place. >> when the fed does taper, bring this home to our audience,
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when does it mean for people's investments, portfolios and what does it mean if you're a borrower for mortgage rates or other personal loans? >> okay. for the economy, 2014 will not be a great year for the bond market like 2013. we expected long-term interest rates will go up between 50 basis points and 1%, not that much but they will go up and that hurts bond returns. for the stock market, i'd always pick an improving economy over monetary medicine. i think the stock market can go up. it's gone up a lot. for individuals, i wouldn't worry too much. i know interest rates will go up but at very low levels. mortgages are an excellent deal. if you can afford to buy a house, and you can get a loan, i still think this is a good time to buy. >> the paradigm has been as rights go higher, as interest rates rise, that's poison for stocks. why do you think the two can
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co-exist with rates and stock prices rising? >> tyler, it depends where the rates are when you start. we looked at data over the last 50 years and we found it's the longest ten-year treasury rate below 5%. that helps the stock market go up. if rates were, say, 8% and go to 9%, it means you have a raging inflation problem. if you start at a low level, rising rates aren't that much of a threat to the stock market. >> david, thank you so much. a pleasure to have you. have a great weekend. >> you too. >> david kelly, chief global strategist. two big banks face accusations of unfair mortgage practices and the allegations are they produced a wave of p foreclosures in my narcotic toy neighborhoods. wells fargo and citi group had red lining. that says the city, settled minority mortgage holders with
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loans they couldn't afford. both banks call the charges baseless. while many big banks are cautious about approving mortgages, smaller banks are swooping in. and as diana olick explains, borrowers are paying attention. >> reporter: brian is about to buy a larger home for his growing family just outside minneapolis. this is not his first foray into the mortgage process. >> i had experiences in the past with a larger lender, dealing with home purchases and i just didn't feel like a special person. i felt like a number. >> reporter: so this time he went with water stone mortgage, a small eer lender based in the midwest. >> it's a smoother process. >> reporter: brian is among a growing number of borrowers turning to non-bank lenders and community banks. their share of the market is 60% compared to 39% in 2009 according to inside mortgage finance. >> i think it's a combination of independent mortgage bankers and
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community banks taking advantage of niches and some larger banks e legislating not to play in some spaces. >> reporter: banks large and small have been busy over the last few years as record low mortgage rates fueled a refinance boom, but rates are rising again now and refinance volume has dropped dramatically, down over 60% from a year ago. that has independent lenders gathered at a conference talking deals. >> now that the industry is in flux, rates are up. some companies are doing well, some aren't. there is an opportunity for companies like mine and others like that, to seek market share and be aggressive in regruting new talent. >> reporter: for the big banks, they may come back into the market more if home sales improve next year. but as for now, david is beating goliath yet again. i'm diana olick in washington. to read more about the small
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lenders come back, head to and still ahead, a number of retailers aren't only looking for shoppers but also a ceo and that could be the biggest concern for shareholders. another demerit for the website. they concede during october and november, about one out of over four transactions sent incorrect information from customers to their new insurance carriers. officials now say those numbers are preliminary, not precise and
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that the error rate is down in one to ten. 18 shopping days until christmas. this is the height of the holiday shopping season, and some well-known retailers know exactly what their putting on their christmas list. courtney regan explains. >> reporter: some retailers are hoping for more than just a strong holiday season. they are asking santa for a new ceo for christmas. it's been six months since lulu lemons ceo said she's retiring once a successor was found. still looking. this summer, j.c. penney began its search to find a permanent ceo to take over for mike olman. the board members changed and the ceo search is on going. abercrombie and fitch may not be looking to replace mike jeffires but engaged capital think it should. even though it may be expensive
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for the company to cut ties with jeffreys. it's about matching need to skill. the trick is finding the right combination of those skills and a strong track record, whether a turn around expert with financial acrements or former merchandising manage we are a strong understanding of a core consumer. >> some retailers may see themself on a fast growth pass and find a ceo who can prove he or she has made that happen for other retailers in the past. >> reporter: who is on the possibility list? andrew jennings, out going ceo of car stat is someone whose both desirable and available. ron sacks former president and chief merchant is available but question whether he's ceo material and the wish list, highly desirable but unavaila e unavailable, ken hicks, footlocker ceo, glen murphy, gap
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ceo and macy's chief merchandising officer. he says to move into education, it's hard to consider him working for anyone else, but if he would be willing, he would be a big get. there is always a chance for a christmas miracle. for nightly business report, i'm courtney regan. sears is spinning off the lands end units, speaking of retail and that's where we begin tonight's market focus. they filed with the fcc to establish for the value of land's end but the bored of directors needs to sign off. this is the latest effort to get back on track as it faces mounding losses and declining sales. shares of sears holdings down nearly 4% to $48.09 today. another retailer, j.c. penney facing an inquiry into the finances. regulators investigating the controversial 800 million dollar stock offering this fall.
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the agency requested information on the liquid did, cash and equity in debt. shares plunged 9% today falling to $8.08. j.c. penney wasn't alone. shares of barnes & noble tumbled today on word it's under investigation by the securities and exchange commission. they are looking into the accounting practices and earnings restatement. the stock dropped to 14.43 dlarlz. intel was the best performing dow stock today after city analysts upped his rating to buy from neutral. the endorsement came because the analyst noted increased corporate demand for personal computers, even though the overall pc market was declining. intel rose more than 2% to 24.8 2. investors will get better returns from overseas markets like europe and japan in 2014.
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he's mark, chief strategist. good to have you with us. let's talk about the outlook for the u.s. markets in light what many people expect is going to be the gradual lessoning of federal reserve stimulus in the economy. >> well, we're expecting 2014 to be an improving year in u.s. domestic growth. what we see here in the latter quarter of 2013, i think is setting up for pretty descent things leading into next year. with the lose of fiscal fraction caused by the sequestered cuts, that will be weaned out of the economy in 2014 coupled with an uptick in consumer business and spending. we think we can tease escape velocity before we leave 2014. >> as tyler was introducing you, he said you're also seeing really good investment opportunities in europe and japan, most people think of those areas as still shaky. tell us just quickly why you
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think that's the way to go. >> sure, susie. the story in europe is not that things had to get better, just had to stop getting worse. we saw that this year and of course, posted two consecutive quarters of economic growth and really some of the cheapest evaluations among developed countries. there is ter fif rick opportunities, which we think will lead to better upside potential than staying domicile here in the united states. >> okay. >> uh-huh. let's get to some picks here, nice dividend and obviously an exciting business. >> we think so, tyler. the fact is we're bullish on the energy renaissance that's being taken place here in the united states. it has great portfolio assets, a lot of rigs in the shale and gulf of mexico and nonetheless. so what they are using the best and most current technology
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available and a hand some dividend trading 12 times earnings in a mid-sized company. >> your next stock make goes along with the international theme, tall international. that's tal ticker symbol. this stock almost doubled this past year. is there still upside? what's the attraction? >> we think so. the head quartered company with again, a really attractive dividend yield around 5%, over, once again trading 12 times forward earnings. the business of shipping will be good on the back of increased domestic and global trade and needless to say this will be a company we believe will fit neatly into that opportunity. >> let's go to pick number three and i have a couple questions, japan dxj, the wisdom tree hedged equity fund. i assume etf. why an etf in japan as opposed to picking a stock there and
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what does hedged mean in this particular case? >> tyler, importantly is the word edghedged and what is done with regard to this etf is they basically negotiated the currency exchange. so investors can get a pure play on the lift and japanese equity prices as opposed to perhaps being washed out of the gains that we foresee for the japanese equity market due to the fact the yen may continue, which we believe it will, to weaken against the u.s. dollar. >> very interesting. thank you very much, mark, for those choices. do you have any disclosures with respect to the securities. >> our clients own all three and i own dxj. and coming up, meet the woman who wants girls to ditch the dolls and start building and not process, she's building a business of her own. the bright idea story is next.
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americans are using credit cards a lot more these days. the amount of debt on credit cards and revolving credit accounts reached the highest level in more than three years in the month of october. that's a good sign of consumer spending leading into the holiday season. all right. traditional construction toys for girls are a tough sale but debbie sterling is trying to change that. her bright idea, a toy called gold did blocks, getting girls interested in tickering and problem solving. the company released a video that drew 8 million hits in a
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week and produced buzz and a lot of sales. debbie sterling didn't play with erector sets growing up. in fact, it was quite a surprise when her high school math teacher suggest she study engineering in college. >> i didn't know what an engineer was. i thought it was a train driver. >> reporter: she found out it's a field dominated by men. only 11% of the u.s. engineering force is female, a sore spot that got her talking with a college buddy, another woman who mentioned playing with her brother's lincoln logs and legos as a kid. >> it hit me, why were those her brother's toys and why didn't it get those? >> reporter: she read about cognitive development. >> girls have strong verbal skills and love story and characters and what was missing, there was -- why are we building
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this roller coaster and who is riding on it and where are we going? and who is it helping? >> reporter: the verbal hook is a book starring goldie and her grandmother was one of the first woman cartoonest in the '50s drawing mr. mcgu. toy makers were stuck in time. mr. magoo's time. the message over and over again was looking at me with pity saying oh, this girl doesn't know that construction toys for girls don't sell. suddenly, i'm walking around like i'm in the twilight zone, i feel like i'm in the 1950s. >> reporter: to prove them wrong, sterling and friends team tested prototypes all over the san francisco bay area. >> you learn that there is so much more complex than what the pink isle makes them out to be. >> reporter: princess dolls, makeup kits, play kitchens and a
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target for disruption she says. her message was a hit on kick starter, the crowd funding website on 2012 where she roped to raise $150,000 to make 5,000 units. >> we hit the goal in four days. >> reporter: in a month she raised about 2 $85,000. the first production run, 40,000 units. toys r us ordered and soon in barbie shadow, there was a new kid on the black. >> its sure rereal and it gives goose bumps. >> reporter: goldie had a professional makeover but her spirit hasn't changed. >> we had matilda, punkie. >> reporter: last year they released this video. a one-week wonder until legal
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issues with the music as you were faced, but the bottom line is it sold goldie blocks toys. >> we shot up to number one and number two best selling toys on amazon this week. >> reporter: sterling was named the rising star inventor of the year, an honor but her focus is on the toughest build of all, change. >> engineering doesn't have to be this incredibly intimidating math science thing. we can show girls engineering changes people's lives and it can help make the world a better place. >> sterling says goldie blocks is making money but not ready to say how much and it's one of four finalist for a contest to win a free super bowl commercial worth close to $4 million. that announcement is due in late january. we'll fill you in when we get it. >> play with the dolls and become an engineer and do great
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things for the country. >> absolutely. >> we can use more women like that. >> that's "nightly business report" for tonight. we want to remind you, this is the time of year your public television needs your support to make shows like this possible. >> i'm tyler mathisen. thanks for your support. have a great weekend, everybody. see you back here on monday. night by business report has been brought to you in part by. >>, up to the minute stock market news and in depth analysis. our quant rating service prov e provides objective independent ratings daily on over 4300 stocks. learn more at the
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gwen: health, wealth and the promise of prosperity, news on week.onts this plus, our tribute to nelson mandela, tonight, on "washington week." the stock market bounces back, the unemployment rate hits a five-year low, the affordable care act may be turning the corner. >> this law is working and will future.o the gwen: is it all too good to be true? >> while the white house wants to claim that is now working, we know that obamacare is still plagued with problems. gwen: outside washington, detroit is headed into bankruptcy, pensions are disappearing and low wage workers say they're being left out. >> people cannot survive on $8.25 in this country.

Nightly Business Report
PBS December 6, 2013 7:00pm-7:31pm PST

News/Business. Susie Gharib, Tyler Mathisen. (2013) New. (CC) (Stereo)

TOPIC FREQUENCY U.s. 4, Tyler 4, Washington 4, Europe 3, J.c. Penney 3, Us 3, Courtney Regan 2, Ben Bernanke 2, Tanger 2, Sears 2, S&p 2, Tyler Mathisen 2, David Kelly 2, Diana Olick 2, Hampton Pearson 2, Obamacare 1, Punkie 1, Susie 1, Matilda 1, Fcc 1
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